Taruga Minerals Limited announced that initial drill targets for a Rotary Air Blast (RAB) drilling campaign have been defined at Morgans Creek, within the Mt Craig Project (MCP). The RAB rig is ready and awaiting drill crew to complete another program, after which RAB drilling is set to commence at the MCP imminently. Morgans Creek has been the focus of copper exploration until this point, however significant REE mineralisation has been defined over an area of approximately 6km long x 2km wide, and remains open in all directions.

Recent metallurgical proxy testwork indicates the REEs at Morgans Creek have a high proportion of readily soluble REEs and therefore indicates that a simple and low-cost metallurgical flow sheet could be used to extract and concentrate the REEs. The technical team have defined a series of new clay-hosted REE targets using the knowledge obtained from recent drilling along with new geophysical datasets and mapping. Soils geochemistry and auger profiles have been completed over the priority target areas, and this geochemical data has been used in combination with other datasets to finalise priority drill targets.

Hydrothermal Hill: The focus at Morgans Creek will be on testing extensions of the clay and saprock hosted REEs identified at Hydrothermal Hill, where a 5km long prospective strike has been identified. While REE anomalism and mineralisation is quite pervasive across multiple lithologies at Morgans Creek, the best grades intercepted to date (which also has exceptional recoveries) were intercepted in the upper weathered and oxidised portions of the highly reactive Yednalue Quartzite. The Yednalue Quartzite is mapped/interpreted to extend for over 5km in strike (and up to 300m wide) at Morgans Creek, to the north and south of Hydrothermal Hill.

Where outcrop is present, prospective alteration matching that seen at Hydrothermal Hill has also been identified along strike, particularly at Hydrothermal Hill North, where approximately 1.5km of prospective strike will be drill tested with several RAB drilling profiles. Western Plains - Shute Prospect: Drilling will also be completed at the newly defined Shute prospect, which sits within the Western Plains area of the Mt Craig project. The Western plains area is a large flat area overlain by shallow transported cover, which expands for over 200km2 on the western side of the Mt Craig Project.

Shute is one of several prospects along strike in the Western Plains area, and is defined by a circular magnetic feature approximately 500m in diameter at the junction of 3 interpreted major structures, offset from the exposed mafic intrusions within the Worrumba diapir to the east. The underlying geology is interpreted to be reactive sedimentary rocks. RAB drilling profiles will be completed across the Shute prospect to characterise the anomaly.

Shute is believed to be prospective for clay-hosted REEs. The basement rocks at Shute may also be prospective for copper. Significant intercepts from Taruga's 2021 drilling at Morgans Creek (previously reported) include5: 6m @ 1,210 ppm TREO from 9m (MCRC048); 22m @ 1,050 ppm TREO from 27m, including 10m @ 1,940ppm TREO (MCRC048); 31m @ 487ppm TREO from 21m, including 3m @ 1,996ppm TREO (MCRC010); 3m @ 1,715ppm TREO from 39m, including 2m @ 2,456ppm TREO (MCRC024); 13m @ 505ppm TREO from 31m, including 3.15m @1,172ppm TREO from 31m (MCDD004); 7m @ 560ppm TREO from 2m, including 1m @ 1,124ppm TREO (MCRC026); 5m @ 779ppm TREO from 28m, including 2m @ 1,547ppm TREO (MCRC015); 4m @ 953ppm TREO from 1m (MCRC013); 17m @ 410ppm TREO from surface, including 3m @ 945ppm TREO (MCRC050).